Public health incidents at home and abroad are still raging. Residents’ demand for non-necessities such as clothing and home textiles continues to decline. Clothing and textile orders at home and abroad are decreasing day by day. Early orders Deliveries are gradually being completed and follow-up orders are out of stock. Textile companies are struggling. As a textile raw material, polyester filament is also facing the dilemma of high production and high inventory. The contradiction between supply and demand is highlighted and expectations of reductions are intensifying.
According to convention, summer is mostly the off-season for polyester filament demand, and corporate inventories will also reach a high point during the year. However, this year due to the impact of public health events, polyester filament sales have declined. At the end of the first quarter and the beginning of the second quarter, the inventory reached a high point during the year. In the second quarter, a series of measures such as cost-side boosting and corporate preferential promotions caused polyester filament inventory to drop significantly.
However, since the third quarter, as the temperature gradually rises, the inventory pressure of polyester filament companies continues to increase, and the downstream texturing, weaving, printing and dyeing industries have heard that some Enterprises have plans to take holidays. Currently, we know that individual weaving, printing and dyeing enterprises in Shaoxing have started summer vacation mode.
At the same time, in recent months, most of the southern The region is experiencing a long “Meiyu period”, which has made it even worse for textile companies to receive production orders. Continuous rainy weather has caused large areas of water to enter the workshops of textile companies, causing production to stagnate. At the same time, the humid environment can easily cause fiber, cotton and other clothing products to become damp and moldy, affecting product quality. It is understood that the heavy rainfall on the 15th has restricted textile production in some areas of Jiangsu and Zhejiang. Among them, in the Jiapu area of Changxing, Zhejiang, there was no time for drainage, causing backflow, and the reclaimed water reuse station was closed, which in turn led to the large-scale suspension of water spraying, printing and dyeing in the area. .
Under the double-high situation, the burden of polyester filament will be reduced or the scale will be expanded
Recently, the price of domestic polyester filament has been declining. Since the third quarter, the cash flow of most varieties of polyester filament has been in the red. Taking POY150D/48F as an example, the cash flow in mid-June remained around 300 yuan/ton. After the end of June, the cash flow continued to narrow, and the cash flow continued to shrink until July. It is in a loss-making situation, with a cash flow loss of more than 400 yuan/ton as of press time.
It is understood that the total retail sales of clothing, shoes, hats, and knitted textiles nationwide in June was 105.9 billion yuan, a decrease compared with the same period last year. 0.1%. The total retail sales of clothing, shoes, hats, and knitted textiles nationwide from January to June was 512 billion yuan, a decrease of 19.6% compared with the same period. However, the export situation in terminal areas such as clothing, home textiles, shoes, and hats is not optimistic.
Many fashion clothing brands in the United States have canceled orders for autumn and winter. Among them, the American sports giant Nike said that it has canceled pre-orders for the autumn and year-end shopping seasons. With 30% of factory orders, American fashion luxury goods group Ralph Lauren said it has canceled about two-thirds of its autumn orders. The double drop in domestic and foreign trade orders has further intensified the contradiction between supply and demand of textile raw materials such as polyester filament. Companies in downstream weaving and other fields are increasingly willing to reduce production, reduce burdens, and take holidays. Polyester filament companies are still holding on.
Currently, rumors in the industry about polyester filament companies reducing their burdens are gradually increasing, and industry insiders are always paying attention to the situation of companies reducing production and reducing their burdens.